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Getting Approved for the Biggest Loan: The Mortgage

Getting Approved for the Biggest Loan: The Mortgage

While most of us take out the occasional cash advance, cash call, or personal loan, these truly do not compare to the mortgage. The sheer size of a mortgage is enough to make many customers nervous. As well, the application process for a mortgage can be intense – you need to improve your credit, seek out pre-approval, and really prove to a lender that you are ready for the financial responsibility.

You can improve your chances of getting a mortgage by getting ready early. As soon as you realize that you want a home, start improving your credit score. It is important to have a perfect credit score when you apply for a home loan because you want the best rates possible – a large rate on a big mortgage could mean you end up paying tens of thousands of dollars more than you have to over the term of your mortgage.

Once your credit is perfect – or as close to perfect as you can get it – start gathering your financial documents. “Your mortgage lender may need to see a few years worth of personal income tax statements as well as your income statements, to show that you make enough to pay off a mortgage. If you have any unpaid unsecured loans or cash advances, pay them off before you see a lender” – says Chris F. Davenport CEO of LocalCashHelp. The less debt you have, the happier a lender will be to lend you a mortgage. Also, before you go in to see if you can get pre-approved, make sure you read our guide to mortgages to find more great tips on getting approved on your home loan.

Investing in Real Estate

Many people dream of investing in arts, stocks, and other assets, but by far the most popular investment remains real estate. Real estate continues to be the king of investments simply because it is so accessible, easy to finance, and reliable. Many fortunes have been made with real estate and many people have created a second income for themselves with property. Here’s how:

1. Foreclosures are homes which are repossessed for non-payment of a mortgage. These homes can easily be purchased for less than their original price. They can then be resold or the equity in these homes can be used.

2. Flipping involves buying a home for less than it is worth, fixing it up quickly, and reselling it at a profit.

3. This is the most popular way to invest in real estate. An investor purchases a property, pays it down, and holds onto it. The property rises in value, allowing the buyer to resell or simply to use the equity in the home.

4. Some investors buy property and rent or lease it, creating a nice passive income.…

What Should You Focus on to Enjoy Wealth?

What Should You Focus on to Enjoy Wealth?

Focusing on a few specific areas of your finances is the best way to build up wealth. Here’s where you should be putting your attention:

Savings. At a bare minimum, you should be saving 10% of your income, and preferably more. These savings should be going towards an emergency fund and towards a retirement savings fund.

Investments. Investments are vital for wealth because they allow your money to grow much faster than cash can grow with savings alone. What you invest in matters less than the practice of investing intelligently. Research investment possibilities and invest in a small variety of investments that make sense to you.

Earning. You need to focus on increasing your income and investing or saving the difference in order to maximize your net worth.

Debt management. Paying down your personal loans, student loans, credit cards, payday loans, and other debts improves your credit score and makes your finances much healthier. With less debt, you have more money to enjoy and more money to save.…

A Smart Tax Strategy Can Save You Cash

A Smart Tax Strategy Can Save You Cash

good tax adviserPersonal income taxes can be a major expense at this time of year. If you invest or sell your home, your taxes might be significantly higher. Saving on your taxes can leave you more cash towards your personal loans and savings. There are many ways you can win at taxes:

– Find a great tax adviser. A good tax adviser can give you specific tips and advice based on your specific situation. He or she can also help you devise a tax strategy and a long-term financial plan that works. Tax professionals tend to be busy at this time of year, but do make an effort to get recommendations and try to get a consultation, at least, with a good professional.

– Read up about tax deductions and strategies for yourself. Even if you have an excellent tax professional on your side, you still want to take control of your own finances. Read books about personal finances and taxes and take an interest in tax strategies and deductions. Which tax issues should you discuss in greater detail with your financial adviser?

– Make financial decisions with taxes in mind. If you want to start investing, saving, or want to sell your home or another asset, find out what the tax implications will be and make your decisions to save on taxes as well as to maximize your profits.…

Student Loans Affect Credit In Many Ways

Student Loans Affect Credit In Many Ways

As the cost of higher education continues to increase, many graduating seniors have been leaving college with a lot of student debt. This debt can have an impact on your credit in many ways.

Understanding the ways a student loan affects your credit can help you avoid having to dip into your emergency fund to cover high credit payments if your score is damaged.

Pay Student Loans On Time – Making your student loan payments on time is extremely important, as missing a payment will hurt your credit score. You shouldn’t treat your federal loans any different than your private ones. Missing payments on both of them will negatively affect your score in the same way.

Student Loans Are Reported As Installment Loans – In most cases, student loans are reported to credit agencies as installment loans. This means that repayment is made in fixed monthly amounts. For this reason, missing a payment on student debt typically hurts your score less than if you were to forget to pay your credit card. This means that if you are faced between paying one or the other, it may be more beneficial for your score to make the credit card payment.

Deferred Loans Still Affect Your Credit – Although your student loans have been deferred, they are still reported to credit agencies. The status of these loans are not viewed as negative or positive, but the balance will still be reported. This will increase the balance of debt you have on your report, which could hurt your ability to take out other loans in the future.

Never Default – Defaulting on your student loans should be avoided at all costs. This can hurt your credit score for up to seven years after your loan is paid in full. If you default, you may be hounded for payments and could face legal action. Your lender may also take money from your wages and tax refunds to cover the repayment of the loan. Even if you can’t cover the full monthly payment, you should call your lender and see if you can switch to a new payment plan that can reduce the amount you owe.…

Certain Items Push Thanksgiving Costs Higher

Certain Items Push Thanksgiving Costs Higher

Thanksgiving is just days away and countless Americans a preheating their ovens and basting turkeys for their feasts.

The average cost of a Thanksgiving meal increased significantly during recent years. This year, the average household is expected to spend close to $50. While this may not seem like a considerable amount of money, it was an increase from 2022’s average cost of $49.20 and 2019’s $42.91, according to the American Farm Bureau Federation.

However, some consumers face much higher costs than others. Households in the following areas should ensure to take care with their budgets this Thanksgiving, and avoid the need to dip into their emergency funds once the festivities pass.

New York City Faces Highest Costs
Residents of the Big Apple are saddled with the most expensive Thanksgiving feasts this year, at roughly $80 per household. This is nearly 60 percent more expensive than the national average.

A lack of grocery stores, especially in boroughs such as Manhattan, is believed to be a major factor driving this trend. In addition, the cost of everyday goods in New York City are an average 230 percent more expensive than the national average, and it appears stores make little expectation on Thanksgiving.

Texas Residents See Most Affordable Prices
Residents of the Lone Star State – specifically, residents of Harlingen, Texas – can expect to pay the least for Thanksgiving this year. The average household there will spend an estimated $33 dollars, which is 33 percent below the national average, according to the AFBF.

Key Products Driving Prices Higher
A severe drought which impacted key agricultural areas during the course of 2022 is believed to be a driving force behind the rising cost of Thanksgiving feasts. Specifically, this had a notable impact on the price of turkey.

While turkey were not directly affected by the lack of rain this year, the cost of the food, such as grain and corn, was.

Between 2021 and 2022, the average cost of a 16-pound turkey appreciated to $22.23, making a 66-cent increase. Although this may not seem like a significant change, households buying larger birds could face more expensive costs.

Additionally, the price of bread, which is another Thanksgiving staple, experienced a notable increase from 2021 which could also contribute to more expensive grocery bills.…